Question - 03 (A)

For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing:

  1. Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
  2. paid Rs. 2,50,000 to acquire shares in informa tech and received a dividend of Rs. 50,000 after acquisition.
  3. Sold machinery of original cost of Rs, 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60.000.
Question - 03 (B)

From the following information calculate cash flow from operating activities :
2002 : Debtors Rs. 15,000, Outstnding exp. Rs. 3,000, Prepaid exp. Rs. 2,000, Creditors Rs. 13,000.
2001 : Debtors Rs. 12,000, Outstnding exp. Rs. 1,000, Prepaid exp. Rs. 2,500, Creditors Rs. 15,000.
Profit during the year 2002 is Rs. 25,000.

Question - 03 (C)

From the following information calculate cash flow from operating activities :
2007 : Profit & Loss A/c Rs. 1,20,000, Debtors Rs. 62,000, Outstnding exp. Rs. 42,000, Prepaid exp. Rs. 4,000, Creditors Rs. 38,000, Goodwill Rs. 76,000.
2008 :  Profit & Loss A/c Rs. 1,10,000, Debtors Rs. 50,000, Outstnding exp. Rs. 24,000, Prepaid exp. Rs. 8,000, Creditors Rs. 26,000, Goodwill Rs. 80,000.

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